Thursday, February 21, 2013 6:10 pm
Heinz 3rd-quarter net income dips
The Associated Press
Like many in its industry, Heinz has looked abroad for growth as sales in mature markets like North America and Europe slow down. Heinz has a growing stable of sauces suited to local tastes around the world. The maker of Heinz ketchup, Classico pasta sauce and Ore-Ida potatoes said emerging markets including Latin America, Indonesia and China drove growth, with sales in that segment up nearly 19 percent.
Global ketchup sales rose nearly 5 percent, driven by strong performance in Russia, Latin America and Canada. Countering the sales growth, however, Heinz booked a loss of $36 million to write off Shanghai LongFong Foods, a frozen food business in China that it plans to sell over the next year.
Net income for the three months ended Jan. 27 totaled $269.5 million, or 83 cents per share. That compares with $284.7 million, or 88 cents per share, last year. Excluding one-time items, net income from continuing operations totaled 99 cents per share, easily beating the 90 cents per share expected by analysts, according to Fact Set.
Revenue rose 2 percent to $2.93 billion from a year ago, coming in shy of the $2.99 billion that analysts had forecast.
Shares rose 5 cents to close at $72.19 before the report; they were unchanged in after-hours trading.